Prima facie case on clandestine removal allegations justified total waiver of predeposit and stay of recovery.

A prima facie case existed for waiver of predeposit and stay where waste and scrap were admittedly received back from a job worker. The only dispute was whether the goods were properly recorded in statutory records, but the appellant showed receipt and consumption in private records. Non-entry in statutory records, by itself, was insufficient at the prima facie stage to establish clandestine removal without payment of duty. On that basis, total waiver of predeposit of duty and penalty was granted and recovery was stayed during pendency of the appeal.

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Issues: Whether the appellant had made out a prima facie case for waiver of predeposit of duty and penalty on the allegation of clandestine removal of waste and scrap received from a job worker.

Analysis: The waste and scrap were undisputedly received back from the job worker. The only dispute was whether the appellant had accounted for the same in statutory records. The appellant showed receipt and consumption of the waste and scrap in its private records, and the absence of entry in statutory records, by itself, did not establish clandestine removal without payment of duty at the prima facie stage.

Conclusion: The appellant was entitled to total waiver of predeposit and stay of recovery during pendency of the appeal.

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